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EDITORIAL

Maqasid: Bringing Islamic Finance and Banking Back to Life

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The fundamental concerns, real-world challenges, and consequences of traditional economics, banking, and finance have become more visible in modern times.

The banking and financial sectors, together with other corporate actors, are continuing the actions that have contributed to Earth’s imbalanced situation. The widespread discussion on sustainable development goals (SDGs), also known as environmental, social, and governance objectives, demonstrates attempts to prevent them (ESG) and Shariah-compliant checks.

For centuries, macro-economists, micro-economists, wealth and asset managers, and the corporate world have sought profit and utility maximization, marginal cost and benefit analysis, Pareto efficiency, and continuous path convergence measurements, and these efforts have generally pushed humanity to the brink of extinction. Natural calamities, such as wildfires, soil erosion, earthquakes, floods, and typhoons, seldom go unreported.

Another alternative is Islamic Economics (IE), which may be the only one to deliver answers based on strong and comprehensive foundations from trustworthy Islamic sources. Epistemological integration is a critical instrument for putting this choice into practice. Approaches for epistemological integration that integrate textual and real-time sources assist training and learning. These techniques can change our minds and impact how individuals view the world.

Consumption and production can be managed if we modify our perspective to the consumption of items we genuinely need, require less, or don’t need. The Shariah notion of Maqasid (objectives) is a major factor in the necessity hierarchy. There are three degrees of necessities in this hierarchy: Daruriyyat (essential), Hajiyyat (intermediate), and Tahsiniyyat (luxurious).

Most people can make earnings with the first two categories while aspiring to the third. The economic world has molded us to chase non-essential desires while ignoring fundamental requirements. Spending one’s income on any need is a legal privilege, but the long-term consequences of such thinking have pushed humanity to the brink of extinction. Such consumer demand is no longer sustainable in terms of supply.

The world evolves as people’s viewpoints shift. Adjusting our perspective on the world may assist with many of our current problems. This perspective is reflected in our usage of resources to create and consume them. We know that consumption is a critical component of any economic system. It displays supply and determines demand levels.

SDGs and ESGs

SDGs and ESGs, on the other hand, are sustainably reachable via a better epistemological knowledge of economic activity, and referring to the Maqasid helps us manage our needs and desires more efficiently. It will govern our consumption, but it will also synchronize supply levels. Questions to consider when we go more into epistemological economic thinking and the Maqasid methodological world include “Do I truly need this item? If so, for what?” to “Will I truly utilize it or dispose of it soon after getting it?” and “Do I influence anyone’s life by disposing of stuff so rapidly and recklessly?” among other questions.

These are simple questions that any customer may ask themselves to see if their purchasing habits are sensible and sound. This will also correct the rational or good supply level. As a result, consumers will become more conscious of their activities, such as the disposal of plastics, gadgets, and clothing, which impact the degree to which specific SDGs or ESGs are met. The supply side, or producers, stay on track, satisfy customer demand, and consider ways to improve their experience. This method of economic reasoning is epistemic in that it feels how goods were provided to the customer and how the consumer uses and disposes of them.

Consumer impression is shaped more completely when they are aware of the source of a product and its usage, and their actions are rooted on solid grounds. All of their acts are carried out more responsibly. Thus, Maqasid may be considered highly normative and anchored in sources of knowledge, such as contributing to environmental preservation, resource usage, product/thing sharing through responsible disposal, and living within one’s means and real requirements without sacrificing one’s quality of life. When consuming or providing a product, the consumer becomes active in an economy by questioning its purpose and intent. When we have a reasonable goal or mission that characterizes living, we can connect with our environment’s reality (Haqiqah). Life gets more honest.

The Maqasid-based epistemological approach in an economy has the potential to shape not only individuals but also industries of finance and banking services in such a systematic and genuine way as to reveal the true teachings, vision, and mission of what the Islamic banking and finance (IBF) industry aspires to achieve. As a result, it is time for stakeholders and shareholders, all of whom are consumers, to rethink their consumption patterns and use and dispose of their possessions responsibly to contribute to the global goals of the SDGs and ESGs. This also makes the Maqasid useful. Furthermore, IBF institutions can universalize their economic activity by appealing to customers all over the globe who are still unaware that IBF is not only for Muslims.

The world now has the opportunity to comprehend IBF via its epistemological foundation and comprehensive Maqasid gateway, where innovation and creativity drive change. Contemplation along these lines allows the IBF to reclaim its reputation as the engine of an Islamic economy or alternative economic system in which contemporary movements for greater data analytics and artificial intelligence are integral, as well as the fuel for greater empirical testing and refinement about sound philosophical foundations derived from Islamic sources of knowledge.

The assessed approach to economic understanding and the reformation of the IBF business based on real-time data demonstrate multidisciplinarity. Maqasid employs an integrative epistemological basis to identify and articulate the greater aim of consumption and production. Combining the two encourages convergence along a long-term development path toward increasing Shariah compliance levels. Higher levels of Shariah compliance equal elevated levels of ESGs and SDGs, which are proportional to a viable environmental solution.

What MAQASID Do For Individuals?

The improvement of everyone’s lives and the avoidance of future tragedies are made possible by slowing human activity on the planet under Maqasid’s good epistemological leadership. This ensures the well-being of many individuals whose lives are in danger today. Resources to assist persons suffering from preventable disasters might be utilized to improve their quality of life. These represent entirely new income sources and industry services. As a result, stakeholders and shareholders must implement the demonstrated economic justification or face the consequences.

Practitioners, especially academics and corporate leaders, should use a detailed analytical framework in which philosophical foundations are critical to determining action objectives (Maqasid). Training, seminars, and workshops regarding such foundations in academia and business may facilitate the exchange of ideas among specialists in texts and situations. This would compel practitioners to reconsider their existing engagement patterns and completely redesign confined, imitated limited, and incoherent programs. The provision of social services serves as the consumer base for all of us. Hence the major emphasis of practitioners’ orientation should be on social needs.

Changing social circumstances will result in the continuance of recent experiences we hear about daily if regulators maintain a watch on the wide variety of activities that such economic reasoning stimulates; a data-driven economy may be, by higher purposes and objectives (Maqasid), established on sound philosophical underpinnings. Such economic activity would have a significant and appreciated global impact. Even if a new economic era is only getting started, new viewpoints are critical to maintaining the validity of the reinvented approach to economic growth, the formation of banking and finance, and other corporate world players.


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EDITORIAL

When America Turns Away, Who Will Stand with the World’s Poor?

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The silent dismantling of the United States Agency for International Development (USAID) by the Trump administration has already begun to cast a long and catastrophic shadow across some of the most vulnerable regions of our planet. While the world watched in disbelief, Washington took a scalpel—and at times a sledgehammer—to decades of humanitarian partnerships, transforming America’s image from a flawed but willing global responder to an indifferent bystander.

Under the guise of the “America First” doctrine, the White House is not only slashing funds—it is uprooting entire systems of international solidarity. USAID, long a cornerstone of the U.S. foreign policy arsenal, is being dissolved into the bureaucratic core of the State Department, its staff decimated, its mission neutered. This is not just policy redirection. It is strategic retreat.

And the consequences are already devastating.

In Myanmar, a country teetering between civil war and natural catastrophe, a deadly 7.7 magnitude earthquake has laid bare the moral vacuum left by the U.S. pullback. More than 3,300 people are dead. Entire neighborhoods are reduced to rubble. While Washington has offered a paltry $9 million in aid, the true toll lies not in numbers but in absence—no boots on the ground, no structured response, no meaningful engagement. By contrast, in the 2023 Turkey-Syria quake, the U.S. pledged $185 million and dispatched hundreds of relief workers. Myanmar, it seems, is now relegated to the back pages of the U.S. conscience.

In Afghanistan, the picture is equally dire. The abrupt halt of funding for World Food Programme (WFP) operations, and the shuttering of hundreds of WHO-supported clinics, has pushed a starving, war-weary population further into the abyss. Twenty-three million Afghans need humanitarian aid. Two million rely on WFP food rations that will now no longer come. The rationale? That funds might trickle to the Taliban. But blanket punishment of a population—especially women, children, and the elderly—is neither just nor strategic.

In Sudan, now entering its third year of a brutal civil war, the picture is almost apocalyptic. More than 30 million people are in need of aid. Nearly half a million have already died of hunger and disease in 2024 alone. With the U.S. pulling out, 80% of community kitchens have shut down. Refugees in Chad, already living on the brink, are now left without food, water, or hope. Once again, the U.S. has ceded moral ground.

Even in South Africa, where the President’s Emergency Plan for AIDS Relief (PEPFAR) has for two decades been the world’s most successful anti-HIV initiative, the damage is palpable. Experts now warn that without sustained funding, South Africa could face an additional 565,000 HIV infections and over 600,000 deaths by 2034. Thousands of support services have been halted, and a generation of progress stands at risk.

These aren’t just numbers. They are the real, lived experiences of millions of human beings—trapped in crises not of their making, caught in the crosshairs of global geopolitics, abandoned in their hour of greatest need.

And yet, amid the wreckage, a critical question arises: Who will fill the void?

If the United States is retreating from its role as the world’s emergency responder, the onus must shift to others with the capacity and resources to help. Here, we must issue a moral and strategic challenge to the wealthier nations of the Gulf—Saudi Arabia, Qatar, the UAE, Oman, and Kuwait.

These countries have benefited from decades of immense oil wealth, and many have built modern economies, world-class cities, and sophisticated diplomatic networks. But with wealth comes responsibility. It is time for the Gulf to rise to the mantle of global humanitarian leadership—not just through quiet diplomacy or symbolic donations, but through bold, coordinated, and sustained intervention in global crises.

Gulf nations, particularly those that claim leadership in the Islamic world, must now walk their talk. Islam’s teachings on compassion, zakat, and the duty to protect the vulnerable are clear and uncompromising. What greater test of faith and moral purpose than to respond to famines in Sudan, earthquakes in Myanmar, or epidemics in sub-Saharan Africa?

In 2022, Qatar showed remarkable leadership by mediating in Afghanistan and offering humanitarian aid during natural disasters. The UAE has increasingly stepped into the humanitarian space in East Africa and Yemen. Saudi Arabia’s King Salman Humanitarian Aid and Relief Centre has made strides in emergency response. But these efforts must now be scaled, systematized, and globalized. The Gulf must move beyond regional charity into international humanitarianism.

Moreover, such leadership is not only ethical—it is strategic. By filling the humanitarian gap left by the United States, Gulf countries can enhance their soft power, build alliances with Global South nations, and demonstrate that a multipolar world need not be a fractured one. If the West is faltering, the Global East and South must not fail.

Let the response to this moment of crisis become a defining chapter in Gulf leadership. Let the world say that when America turned away, others stood up. That amid despair, compassion found new champions.

For in the end, history will judge not the power we held, but the lives we saved with it.


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EDITORIAL

Trump’s Tariff Tsunami: Charting a Strategic Response from the Islamic World

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The world today stands on the precipice of a profound geopolitical and economic recalibration. With his latest sweeping tariff declaration—a 10% blanket levy on nearly all imported goods, alongside severe country-specific tariffs—Donald J. Trump has launched what may prove to be one of the most consequential acts of economic nationalism in modern history. Framed as a patriotic revival of American industry, it is, in fact, a seismic disruption of global trade norms with reverberations that will be especially destructive to the Global South and, by extension, the Islamic world.

This moment calls for clarity—not only of analysis but of strategy. For Muslim-majority countries already navigating fragile developmental paths, Trump’s tariff agenda may well become a catalyst for systemic realignment. It demands not despair, but a redoubling of efforts toward economic self-determination, intra-OIC trade expansion, and a bold embrace of Islamic economic principles.

A Revival of Mercantilism in a Globalized Age

At the heart of Trump’s new economic policy lies a nostalgia-fueled resurrection of mercantilist thought. In seeking to reverse the effects of decades-long globalization, his administration is deploying 20th-century tools against a 21st-century reality. The United States, no longer the singular industrial hegemon it was after World War II, now competes in a multipolar economic world. Yet Trump’s tariff regime assumes that insulating domestic markets from international competition will singlehandedly reindustrialize the American economy.

History, however, warns against such assumptions. The Smoot-Hawley Tariff Act of 1930—often cited by economists as a contributing factor to the Great Depression—demonstrated how aggressive protectionism can lead to retaliatory spirals, global contraction, and social unrest. What we are witnessing today bears alarming similarities, albeit on a digitally interconnected and supply-chain-dependent global stage.

An Asymmetric Earthquake: The Vulnerability of Emerging Islamic Economies

The Islamic world—comprising over 50 nations, many of which are dependent on exports to Western markets—is uniquely exposed to this unfolding economic earthquake. While countries like China and the European Union may possess the leverage and infrastructure to respond with countermeasures, Muslim-majority economies—especially in South Asia, Sub-Saharan Africa, and Southeast Asia—face a more existential challenge.

Consider the case of Pakistan, Indonesia, Bangladesh, and Egypt. These nations are not only reliant on textile and agricultural exports to the United States but are also structurally embedded within global value chains that feed Western consumer markets. A sudden imposition of high tariffs on these exports—some reportedly as high as 50%—is not just punitive; it is potentially ruinous.

More alarmingly, these policies threaten to undermine decades of incremental gains achieved through preferential trade agreements, foreign direct investment, and participation in multilateral trading systems. For many of these nations, Trump’s tariffs are not just economic measures—they are external shocks with deeply internal consequences: rising unemployment, inflationary pressures, balance-of-payments crises, and heightened political instability.

An Opportunity to Reclaim Strategic Economic Sovereignty

Yet within this crisis lies a generational opportunity. Trump’s unilateralism and the broader Western trend toward economic insularity may, paradoxically, offer the Islamic world a historic opening to reimagine its position in the global economy—not as passive peripheries, but as an interconnected bloc of strategic importance.

There is a growing case for the acceleration of intra-OIC trade, currently hovering around a modest 20% of total trade among member states. Through strengthened regional economic cooperation, harmonized halal certification, integrated digital payment systems, and Islamic finance-backed industrial projects, Muslim-majority nations can foster alternative markets less susceptible to Western volatility.

Institutions such as the Islamic Development Bank, OIC Trade Negotiating Committee, and D-8 Organization for Economic Cooperation must now take center stage in coordinating a South-South trade renaissance. Additionally, Gulf Cooperation Council (GCC) nations, with their sovereign wealth and capital surpluses, have a critical role to play in underwriting industrialization efforts across lower-income OIC partners, creating mutually reinforcing economic corridors.

Furthermore, this is an opportune moment to reinvigorate the Islamic economic paradigm itself. Rooted in risk-sharing, ethical finance, and real-sector investment, Islamic economics offers a framework better attuned to sustainable development than the speculative excesses of neoliberal globalization. The decoupling of global trade may, therefore, provide the Islamic world with the impetus to invest in economic models that reflect its values and aspirations.

The Imperative of Strategic Unity

A fragmented response to this crisis will only deepen vulnerabilities. But a coordinated, principle-driven, and future-focused strategy could transform this tariff tsunami into a platform for economic reawakening across the Islamic world. The choice before us is stark: either remain at the mercy of shifting Western political winds or rise collectively to forge new alliances, institutions, and economic instruments.

Let us be clear: Trump’s tariffs are not simply a U.S. domestic policy—they are a challenge to the very fabric of globalization and an implicit message that the rules-based international economic order may no longer serve emerging economies. If so, then the Islamic world must not only ask what it stands to lose—but what it can gain by standing together.

Conclusion: Beyond Reaction, Toward Reinvention

In Surah Ar-Ra’d (13:11), the Qur’an reminds us: “Indeed, Allah will not change the condition of a people until they change what is in themselves.” This is not merely spiritual counsel—it is strategic guidance.

The Islamic world now faces a defining test. Will it continue to look outward for validation and markets, or will it summon the internal resolve to build resilient, just, and independent economies? Trump’s tariff tsunami may well be a global economic earthquake—but it could also be the spark of a long-overdue economic renaissance for the Ummah.


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EDITORIAL

Trump’s Tariff Gambit and the Specter of Global Economic Chaos

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From the heart of Washington, D.C., the world is once again being dragged into an economic tailspin orchestrated by one man’s populist instincts and obsession with “winning.” Donald Trump’s latest tariff moves are not merely policy missteps—they are manifestations of a worldview that sees international economic cooperation not as a shared platform for mutual benefit, but as a zero-sum game of dominance and coercion.

For Islamic economists and policymakers concerned with equity, stability, and the moral dimensions of trade, the Trump Tariff Show is more than just theatrics—it’s a warning signal of how deeply distorted the global economic order has become.

Tariffs as Weapons, Not Tools

Unlike the Islamic economic tradition which views trade as a mutual covenant governed by justice (adl) and cooperation (ta’awun), Trump’s tariffs are being wielded as economic weapons. The idea of “reciprocal tariffs”—the notion that trade must always be balanced in numerical terms—is rooted in transactional nationalism, not in economic sense. In fact, scholars from Brookings to Peterson Institute for International Economics have repeatedly warned that such a view misinterprets the nature of global value chains and ignores the very logic of comparative advantage.

Islamic teachings on trade, as found in both the Qur’an and Hadith, emphasize ethical conduct, fairness, and avoiding harm (darar). The Prophet Muhammad (peace be upon him) himself was a merchant whose success came not from closing markets to others, but from being known as “Al-Amin” – the trustworthy. Trump’s approach undermines trust and creates fear, a far cry from the Prophetic model.

A Strategy Without Strategy

Trump’s tariff saga lacks coherence. As reported, there is no clear doctrine—only the impulsive judgments of a leader playing to his domestic base. One day tariffs are imposed, the next day they’re paused. Global markets reel and recover like an abused partner in an unpredictable relationship. As The Economist notes, America has moved from predictable superpower to mercurial bully, unsettling even its closest allies.

Compare this with the Islamic economic emphasis on istiqrar (stability) and maslahah (public interest). Policies must be predictable, transparent, and rooted in long-term welfare—not short-term political spectacle. The Qur’an explicitly condemns deceit and sudden, destabilizing action in commercial dealings. In the Islamic vision of a just economic order, the state should be a shepherd (ra’i), not a predator.

The Myth of Reshoring and Manufacturing Mirages

Trump’s fantasy of “bringing jobs back” through punitive tariffs ignores basic economic realities. U.S. manufacturers are not leaving because tariffs are too low—they’re moving operations because of automation, wage differentials, and global efficiency gains. Punishing trading partners won’t change this. On the contrary, it risks triggering retaliation, increasing consumer costs, and destabilizing emerging economies—including those in the Muslim world.

China has already responded with its own tariffs, and others may follow. The world is being forced into trade blocs and protectionist corners. Islamic economies, particularly those dependent on export markets—like Malaysia, Indonesia, and even parts of the Middle East—stand to lose significantly. The result? Greater inequality, disrupted supply chains, and rising food and energy insecurity.

The Islamic Economic Alternative: Justice and Interdependence

The Islamic economic system envisions a world of interdependence based on moral values. Trade is a bridge, not a battleground. Protectionism must be measured, not malicious. Policies must promote the maqasid al-shari’ah—preservation of wealth, life, and dignity—not endanger them.

Instead of Trump’s chaos, we need international trade governed by mudarabah (risk-sharing), sukuk for infrastructure development, and transparent mechanisms that elevate developing economies rather than suffocate them.

Muslim-majority countries, especially those in the OIC, must use this moment to reevaluate their dependency on unpredictable partners and instead pursue regional trade, South-South cooperation, and Islamic economic integration. The Islamic Development Bank and institutions like D-8 must step up with frameworks that promote intra-OIC trade based on principles of equity, not economic blackmail.

Conclusion: Chaos as a Symptom of Deeper Decay

Trump’s tariff theatrics are not an isolated event—they are symptomatic of a deeper corrosion of global economic ethics. For Islamic economists, the lesson is clear: the time has come to build parallel economic institutions rooted in moral clarity, strategic foresight, and inclusive prosperity.

The Qur’an reminds us: “Woe to those who give less [than due], who when they take a measure from people take in full. But if they give by measure or by weight to them, they cause loss.” (Surah al-Mutaffifin 83:1-3). That, precisely, is the spirit of Trump’s tariff regime—mutaffifin economics. It is neither sustainable nor just.

Let us not merely watch this TV show from the sidelines. Let us offer a better script.


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